According to a new report from Redfin, relocating homebuyers continue to seek out more affordable locales in favor of big, expensive coastal cities.
The trend of homebuyers making their way out of big, expensive coastal cities has continued into late 2023, with smaller more affordable cities absorbing the outflow, according to a new report.
Many of the top 10 cities on the list offered greater affordability relative to large coastal cities. Many were also in the Sun Belt, facing intensifying climate risks such as the growing threat of hurricanes in Florida cities and of extreme heat in Southwestern cities like Phoenix.
Fewer homebuyers, in general, are looking to relocate this year, however, due to increased mortgage rates which make buying a home more difficult.
Here are the top 10 destination cities where homebuyers relocated in 2023, according to Redfin.
1. Sacramento, California
The top location for relocating homebuyers in October 2023, Sacramento had a net inflow of 5,000 for the month, compared to a net inflow of 7,800 last October. (Net inflow in Redfin’s report represents the number of Redfin home searchers looking to move to a city minus the number of searchers looking to leave.) Most people looking to move to Sacramento are from nearby San Francisco, according to the report.
2. Las Vegas, Nevada
Las Vegas had a net inflow of 4,000 for October 2023, compared to 7,100 last year, reflecting the slowdown of homebuying in general. The top origin city of aspiring Las Vegas relocators was Los Angeles, according to Redfin.
3. Orlando, Florida
One of the four Florida cities on the top 10 list for October, the home of Walt Disney World attracted a net inflow of 3,700 during October 2023, an amount that was unchanged from October 2022. The top origin city for Orlando was New York City.
4. Myrtle Beach, South Carolina
This coastal South Carolina city attracted a net inflow of 3,700 during October, up from 3,100 a year earlier. Most would-be relocators were from Washington D.C., according to Redfin.
5. Portland, Maine
The small seaside city known for its historic waterfront and working fisheries had a net influx of 3,600 during October, up from 3,200 the year before. Most searchers were looking to move from nearby Boston.
6. North Port-Sarasota, Florida
Sarasota counted a net inflow of 3,600 during October 2023, down from 4,300 a year earlier. Most relocators were coming from New York City, as was the case with other Florida cities.
7. Salisbury, Maryland
The small town of 33,000 on the Wicomico River had a net inflow of 3,500 during October 2023, an increase from the year prior when its inflow was 2,300, according to Redfin. Most aspiring relocators come from Washington, D.C.
8. Cape Coral, Florida
Cape Coral counted a net influx of 3,400 during the month, down from a year prior when it was 4,600. Unlike the three other Florida cities on the list, the newcomers’ top point of origin was Chicago, Illinois, instead of New York City.
9. Nashville, Tennessee
Nashville made it back onto the list of most popular homebuyer destinations after being left off the list since 2021. The city had a net inflow of 2,800, up from 2,700 the previous year, with most relocators coming across the country from Los Angeles. The typical home that sold in Nashville in October went for $448,910, roughly half the cost of the typical home in Los Angeles at $880,000. While many Nashville locals have found themselves priced out in recent years, it still remains relatively affordable for those coming from pricier cities.
10. Tampa, Florida
The fourth Florida city on the list, Tampa had a net inflow of 2,800 during October, down by half from a year earlier when it had a net inflow of 5,600. Like most of the other Florida metros on the list, the top city of origin was New York City.